London luxury property prices sink while Madrid and Paris boom

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Top-tier homes are selling for less in London (Source: Getty)

London's luxury property prices fell again in the third quarter, underperforming compared with other European cities such as Paris and Madrid.

The top tier of London's residential property market declined 0.3 per cent in the three months to the end of September, according to Knight Frank.

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On a 12-month basis, London's premium property prices have declined 4.6 per cent. This is in contrast to a global 4.2 per cent uptick across top-tier homes across 41 cities in Knight Frank's prime global cities index.

In Europe, prices for top pads in Madrid have climbed 11.9 per cent in the year to September. The Spanish capital is closely followed by Paris, which saw an increase of 11.3 per cent. Berlin also performed well, as prices increased 7.3 per cent.

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Globally, the top performer was Guangzhou in China. Prices have jumped 36.3 per cent in the Guangdong Province city, growing 6.8 per cent in the last quarter alone.

The best-growing region was Australasia, as Sydney and Melbourne combined grew 10.7 per cent. Meanwhile Russia and the CIS was the weakest area, with prices down 8.4 per cent. St Petersburg and Moscow were the two worst performing cities.

Read more: Could Melbourne's house price boom derail its global city status?